As Maryland legislators debate the merits of shifting some of the cost of teacher pensions from the state to counties, Montgomery politicians are arming themselves with financial data to fight the proposal.
Montgomery County Council President Roger Berliner (D-Dist.1) of Potomac and county Chief Administrative Officer Timothy Firestine briefed members of the county’s state delegation Friday on Montgomery’s economy.
Shifting half of Maryland’s teacher pension responsibilities would cost Montgomery County more than it pays for its departments of transportation, housing and environmental protection — combined — in the first year alone, Berliner said.
The cost shift’s anticipated $47 million burden in fiscal 2013 is more than enough to pay 89 public safety full-time jobs and 109 nonpublic safety full-time jobs in the county, as well as 153 “new hire” teacher full-time jobs and 114 “agency” full-time jobs for Montgomery County Public Schools, said county council staff director Stephen Farber.
“This is part of the strategy, understanding the real world impact on our residents,” Berliner said.
Delegation chairman Brian J. Feldman (D-Dist 15) of Potomac said Friday’s meeting was designed for county leaders to show state lawmakers the specific implications of the pension shift.
Gov. Martin O’Malley’s budget proposes the legislature shift $239 million in teacher pensions costs to local governments. Cost include pensions for K-12 teachers, K-12 librarians and community college teachers, according to the Maryland Department of Legislative Services. O’Malley’s plan includes $244 million in revenue to soften the blow, which includes an increase in the income tax for the state’s high earners. For Montgomery, the cost is estimated by the state at $351 million in the first five years.
Some delegates criticized the county for not having any strategy.
“You asked what can you do to help us,” said Del. Luiz Simmons (D-Dist. 17) of Rockville. “What you could do is give us a policy. The county does not come up here, nor has it, and actually make this case in a serious manner. It’s been quite in fits and starts.”
County officials say options for raising revenue are limited — the county’s income tax is at its maximum and its property tax cannot be raised above the level of inflation without unanimous support from the county council.
Del. Eric Luedtke (D-Dist. 14) of Burtonsville said there were other ways to find funding in Montgomery County, including the admissions and amusement tax which has a state cap of 10 percent, yet is 7 percent in the county.
Defending against criticism from delegates, Berliner noted the county’s role as the economic engine of the state.
State lawmakers asked the county for data to show other Maryland legislators that Montgomery is the economic engine.
kalexander@gazette.net
Staff Writer Danielle E. Gaines contributed to this report.